Re: Gold Soaring


"Jorg Lueke" <jlueke_2000@xxxxxxxxx> wrote in message
news:1194100534.565248.105590@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
On Nov 3, 9:30 am, "Bruce Remick" <rem...@xxxxxxx> wrote:
"Christian Feldhaus" <m...@xxxxxxxxxxxxxxxxxxx> wrote in message

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Bruce Remick <rem...@xxxxxxx> wrote:

"Kyle Mutcher" <kmutc...@xxxxxxx> wrote in message
news:2TTWi.970$Gy4.775@xxxxxxxxxxxxxxx
The price of gold isn't rising, the value of the US $ is
depreciating.

Maybe in theory, but the price of my favorite six pack and the baby
back
ribs at my favorite restaurant hasn't changed over the past year or
two.

Which is what I tell my American friends when they say how "expensive"
things have become around here. :-)

As far as the gold price is concerned, well, of course the price in USD
has gone up faster than the price in, say, GBP or EUR lately. And that
is indeed due to the decreasing "external" value of the dollar. On the
other hand, the gold price here has increased too, obviously because of
increased demand worldwide.

So from my "Eurolandish" point of view, the price _is_ rising, but at a
slower speed than from an American POV. Three years ago, an ounce was
about ¤350, now it is about ¤550. And there may well be countries where
it has changed less in terms of "local" currency.

Christian

You're right. I see various degrees of value/price differences from
country
to country, not so much confined within my own. In the US, the price of
gold in US$ is indeed rising, but not in direct proportion to other goods.
So in that regard, and not being an economist, I don't consider the value
of
the US$ to be declining, even though the experts may explain it that way.

Bruce

So you don't need a raise next year to stay even?

Not because the dollar is depreciating, but because the cost of living
usually rises. My convoluted interpretation, maybe, but I've grown fond of
the dollar. I've been retired and getting annual cost of living raises
from the federal govt for ten years now. The wife gets annual Social
Security cost of living raises, too. During that period the prices of
gasoline, gold, etc. have fluctuated up and down. I blame supply and
demand, speculation, world events, etc. for the rise and fall, and don't
consider the dollar to have lost value in the US. However, were I to go to
another country and change my $US into the local currency, I would probably
take a hit compared to just a couple years ago. So I hold off doing that
and stay home. It's all in one's perception.

Bruce






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